Ganesh Consumer Products Limited Q2 profit rises 69% YoY

Ganesh Consumer Products Limited reported profit of Rs 18.7662 crore for the quarter ended 30 September 2026, up 69% year-on-year, despite a 5% fall in revenue from operations to Rs 226.7252 crore. Finance costs declined 86% to Rs 0.6076 crore and total expenses fell faster than revenue.

Why did Ganesh Consumer Products' Q2 profit rise?

Ganesh Consumer Products' Q2 profit rose because lower finance costs and other expenses outweighed the reduction in sales. Profit before tax increased to Rs 25.1708 crore in the quarter ended 30 September 2026 from Rs 14.9262 crore a year earlier, while profit for the period rose from Rs 11.1218 crore to Rs 18.7662 crore.

The result also improved sequentially from the quarter ended 30 June 2026. Profit for the period was Rs 12.5189 crore in Q1 FY27, compared with Rs 18.7662 crore in Q2 FY27, and profit before tax increased from Rs 16.7927 crore to Rs 25.1708 crore. Basic and diluted earnings per share, which were not annualised, were Rs 4.70 in Q2 FY27, against Rs 3.14 in Q1 FY27 and Rs 3.04 in Q2 FY26.

How much did Ganesh Consumer Products' revenue decline?

Ganesh Consumer Products' revenue from operations declined by Rs 11.9351 crore, or about 5%, to Rs 226.7252 crore in Q2 FY27 from Rs 238.6603 crore in Q2 FY26. Other income increased to Rs 1.7521 crore from Rs 1.2424 crore, but total income still declined to Rs 228.4773 crore from Rs 239.9027 crore.

The six-month comparison also showed lower revenue. Revenue from operations for the half year ended 30 September 2026 was Rs 415.2635 crore, compared with Rs 441.6158 crore in the corresponding FY26 period, while total income fell to Rs 418.8219 crore from Rs 444.0344 crore. Ganesh Consumer Products reports one primary business segment, food and allied products, comprising packaged wheat-based products, gram-based products, spices, and flour made from cereals and pulses.

The quarterly revenue pattern changed between Q1 and Q2 FY27. Revenue from operations rose to Rs 226.7252 crore in the September quarter from Rs 188.5383 crore in the June quarter, while total income rose from Rs 190.3446 crore to Rs 228.4773 crore. The filing does not provide revenue by individual product category within its food and allied products segment.

Which costs changed most in Ganesh Consumer Products' Q2?

Finance costs recorded the largest disclosed reduction, falling to Rs 0.6076 crore in Q2 FY27 from Rs 4.2894 crore in Q2 FY26, a decline of about 86%. Other expenses decreased by Rs 7.8572 crore to Rs 26.7817 crore, while depreciation and amortisation declined to Rs 5.5183 crore from Rs 5.93 crore. Total expenses therefore fell by about 10%, compared with the 5% reduction in revenue.

Material-related costs also declined, although employee benefit expenses increased. Cost of materials consumed was Rs 169.5601 crore, against Rs 175.3795 crore a year earlier, and purchases of stock-in-trade fell to Rs 0.2485 crore from Rs 2.5293 crore. Employee benefit expenses increased to Rs 3.8729 crore from Rs 3.576 crore, while the inventory change was negative Rs 3.2826 crore compared with negative Rs 1.3666 crore in Q2 FY26.

Tax expense rose alongside pre-tax profit. Total tax expense was Rs 6.4046 crore in Q2 FY27, comprising current tax of Rs 6.283 crore and deferred tax of Rs 0.1216 crore, compared with Rs 3.8044 crore in Q2 FY26. Even after that increase, the Rs 10.2446 crore rise in profit before tax exceeded the Rs 2.6002 crore increase in tax expense.

What changed in Ganesh Consumer Products' financial position?

Ganesh Consumer Products' total assets rose to Rs 468.9534 crore at 30 September 2026 from Rs 450.9251 crore at 31 March 2026. Total equity increased to Rs 392.3509 crore from Rs 370.4684 crore, driven by other equity rising to Rs 352.4625 crore from Rs 330.58 crore; equity share capital remained Rs 39.8884 crore at both dates.

Inventories increased to Rs 117.2209 crore at 30 September 2026 from Rs 80.4169 crore at 31 March 2026, while cash and cash equivalents declined to Rs 50.1772 crore from Rs 72.5446 crore. Non-current borrowings decreased to Rs 2.63 crore from Rs 7.1228 crore, whereas current borrowings increased to Rs 1.5118 crore from Rs 1.1621 crore.

The company also classified assets with a carrying value of Rs 12.6245 crore as held for sale at 30 September 2026. During the September quarter, it entered an agreement to sell its Telangana factory's land, building, plant and machinery, transferable permits and deposits for Rs 32.50 crore. The filing says physical transfer and legal title conveyance were to occur after the reporting date, and it recorded an advance of Rs 3.2175 crore under current liabilities.

How is Ganesh Consumer Products using its IPO proceeds?

Ganesh Consumer Products had Rs 43.0458 crore of net initial public offering, or IPO, proceeds unutilised at 30 September 2026. Of that amount, Rs 42.5376 crore was allocated to setting up a roasted gram flour and gram flour manufacturing unit in Darjeeling, West Bengal, and Rs 0.5082 crore was earmarked for general corporate purposes. The company said unutilised proceeds were temporarily invested in fixed deposits and held in a designated special current bank account.

By 30 September 2026, the company had used Rs 77.1856 crore of net IPO proceeds. This included Rs 60 crore for prepayment or repayment of borrowings, Rs 2.4624 crore for the Darjeeling manufacturing project, and Rs 14.7232 crore for general corporate purposes. The revised net IPO proceeds available for use were Rs 120.2314 crore, following a revision in estimated IPO expenses.

The board also declared an interim dividend of Rs 3.70 per fully paid equity share for FY27 on 2 November 2026. The dividend was set at 37% of the Rs 10 face value, and the company specified 9 November 2026 as the record date for shareholders eligible to receive it. The filing states that 4,04,12,946 fully paid equity shares were covered by the declaration.

Conclusion

Ganesh Consumer Products' Q2 FY27 earnings rose despite lower revenue because expenses fell by more than sales. The company reported Rs 18.7662 crore of profit for the period, up from Rs 11.1218 crore in Q2 FY26, as finance costs declined to Rs 0.6076 crore and other expenses fell to Rs 26.7817 crore.

The next disclosed developments are use of the Rs 42.5376 crore remaining for the Darjeeling roasted gram flour and gram flour unit, and completion of the Rs 32.50 crore Telangana factory sale, whose title transfer was pending after 30 September 2026. The company had also set 9 November 2026 as the record date for its Rs 3.70-per-share interim dividend.